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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
4.11. Impairment of non-current assets
4.11.1. Non-financial assets
The Group assesses periodically and at least at each repor ting date whether there is any indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair
value less costs to sell and its value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining
fair value less costs to sell, an appropriate valuation model is used.
For assets that do not generate cash inflows that are largely independent of those from other assets or groups of assets,
the recoverable amount is determined for the cash-generating units to which the asset belongs.
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount. Impairment losses are recognised in the consolidated income statement.
At each repor ting date the group assess if there are indications that a, a previously recognised impairment loss is
reversed or reduce. If this is the case, the Group estimates the asset’s recoverable amount. Except for the goodwill, an
impairment loss previously recognised can be rever ted if there has been a change in the circumstances that caused it.
Such reversal is recognised in the consolidated income statement. The increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset.
Goodwill and intangible assets
Goodwill and intangibles with indefinite lives are tested for impairment by determining the recoverable amount of the
cash-generating unit (or groups of cash-generating units) to which the goodwill relates. If the recoverable amount of
the cash-generating unit is less than the carrying amount, an impairment loss is recognised. At 31 December 2011, the
recoverable amount of the cash-generating units exceeded the carrying amount.
4.11.2. Financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets is
impaired.
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Assets carried at amortised cost
If there is objective evidence that an impairment loss on assets carried at amor tised cost has been incurred, the amount
of the loss is measured as the difference between the assets’ carrying amount and the present value of estimated future
cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at
initial recognition).The carrying amount of the asset is reduced through use of an allowance account.The amount of the
loss shall be recognised in profit or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed, to the
extent that the carrying value of the asset does not exceed its amor tised cost at the reversal date. Any subsequent
reversal of an impairment loss is recognised in profit or loss.
In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the
probability of insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of